U.S. Department of Justice lawyers are already closing in.[1]
Using customer funds held in custody is theft. Period. People go to jail for this.
This may be the biggest embezzlement of customer funds held in custody in history. Most scams involve misuse of funds invested, not just held in custody. The biggest outright theft of this type seems to have been Peregrine Financial.[2] That was $200 million, far smaller than this one.
What happened to the CEO of Peregrine? Here he is, 10 years after conviction:
Bureau of Prisons Inmate Locator
RUSSELL R WASENDORF
Register Number: 12191-029
Age: 74
Race: White
Sex: Male
Located at: Jesup FCI
Release Date: 02/19/2054
Using customer funds held in custody is theft. Period. People go to jail for this.
This may be the biggest embezzlement of customer funds held in custody in history. Most scams involve misuse of funds invested, not just held in custody. The biggest outright theft of this type seems to have been Peregrine Financial.[2] That was $200 million, far smaller than this one.
What happened to the CEO of Peregrine? Here he is, 10 years after conviction:
[1] https://fortune.com/crypto/2022/11/10/ftx-sam-bankman-fried-...[2] https://archives.fbi.gov/archives/omaha/press-releases/2013/...